Steps in the Strategic Management

Process

Strategic management involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies. Traditionally, strategic planning emphasized a top$-$down approach with sefior executives developing goals and plans for the entire organization. Currently, many senior executives are involving managers throughout the organization in the strategy formation process. All levels of the organization must be involved in idea generation and innovation to remain competitive. It integrates strategic planning and management into a single process. Strategic planning should be an ongoing activity in which all managers are encouraged to focus on both long$-$term, externally oriented issues as well as short$-$term tactical and operational issues.

Courtney's Cookies, a gourmet cookie company, was founded by Courtney Ashly with the idea of bringing gourmet cookies to the masses at a reasonable price point. The company has been in business for $5$ years and is positioned for a change. Its top competitor, Miss Meadow's Cookies, has higher brand recognition and a large share in the cookie market. Courtney has substantial financial resources, which will enable her to have a cookie kiosk on almost every street corner in New York City. She will also be able to purchase her ingredients in bulk, thus lowering costs due to bulk purchase discounts. Based on these factors, Courtney gets the necessary permits and begins positioning her kiosks on the first $10$ street corners and signs purchase orders for supplies to begin baking. She will monitor the customer traffic and sales at each kiosk to determine where to place her next $10$ kiosks.

The goal of this activity is to explain the strategic management process.

This activity is important because it demonstrates that all managers should focus on both long$-$term, externally oriented issues as well as short$-$term tactical and operational issues.